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Facts: The owner of a home in a gated community was injured during a home invasion. The owner sued the association, which managed, maintained, and controlled the community. She alleged, among other things, that the association’s negligence in failing to maintain adequate security at the two entrance gates of the community was the proximate—that is, direct—cause of her injuries. The association asked a trial court for a judgment in its favor without a trial. The trial court granted the request, and the owner appealed.

Members of a gated community sued the homeowners association for negligence after they were attacked in the home of one member by a known assailant. The members claimed that the homeowners association, which managed, maintained, and controlled the premises, failed to maintain an adequate level of security at the two entrance gates of the community. The court granted the association's request to dismiss the case without a trial.

Your association's board is often called upon to make judgments about various important community issues.  A member might sue the association over a decision he or she thinks is in the interest of individuals on the board and not in the best interest of the association. A member might sue an association based on the concept of fiduciary duty. A fiduciary duty is a legal obligation imposed on all board members. It refers to their duty of loyalty to the association. Board members have a fiduciary duty to the association.

Over the past few years, numerous associations have seen an increase in the number of members defaulting on their mortgages and not paying their association fees. As a result, some of these associations have had to cut back on services and amenities that attracted their members to a community lifestyle in the first place. That’s because if even a few members don’t pay their assessments on time an association can face serious financial problems.

Community Associations Institute (CAI) recently commended the Federal Housing Administration (FHA) for issuing new guidelines that will provide more opportunities for homebuyers and sellers and greater stability for condominium communities. CAI has pressed FHA to revise rules that determine if a condominium community meets certain guidelines that enable buyers to obtain FHA-insured mortgage loans. FHA is the only source of low down payment mortgages that many borrowers use to become first-time homeowners. For many Americans, condos are often the first step in homeownership.

If the community you manage is considering setting an “acceleration” policy to cut down on the number of delinquent monthly assessments, make sure you know how it works.

Managing your community can be challenging even when things go smoothly and you have the help of competent staff members who are focused on doing their job responsibilities well. Failing to engage employees in activities outside of their day-to-day tasks may, at the very least, leave them unmotivated to do their best work and ambivalent about improving the community; at the worst, it can lead to resentfulness that they’re stuck in the same role without feeling like they’re part of the association.

Q: The association I manage has a general liability insurance policy. Is this enough to protect the association board members from lawsuits, or should I consider additional insurance?